Subsidies for substitutes?: New evidence on deadweight loss and substitution effects of a wage subsidy for hard-to-place job-seekers

Andreas Moczall
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Andreas Moczall: Institute for Employment Research (IAB), Nuremberg, Germany

No 201305, IAB-Discussion Paper from Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]

Abstract: "This paper estimates substitution effects of the German active labour market programme 'JobPerspektive'', a wage subsidy for hard-to-place welfare recipients. Using a novel panel of the entire population of German establishments with full information on unsubsidized and subsidized employment, counterfactual employment levels of subsidized employers are modelled by way of matching on the propensity score of receiving the subsidy. Using the same method, the substitution of particular groups of workers, including those subsidized by other programme types, is investigated as well. Results provide little evidence for widespread substitution of regular workers due to receiving this particular subsidy; in fact, regular employment is somewhat increased in West Germany as a result of subsidization. Furthermore, JobPerspektive is being used by employers in lieu of wage-paying work opportunities, and receiving JobPerspektive causes establishments to employ more workers with regular hiring subsidies." (Author's abstract, IAB-Doku) ((en))

Keywords: Bundesrepublik Deutschland; berufliche Reintegration; Beschäftigungseffekte; Eingliederungszuschuss; Erfolgskontrolle; Langzeitarbeitslose; Lohnkostenzuschuss; schwervermittelbare Arbeitslose; Arbeitsgelegenheit; Arbeitslosengeld II-Empfänger; arbeitsmarktpolitische Maßnahme; Wirkungsforschung; 2007-2011 (search for similar items in EconPapers)
JEL-codes: C31 H25 M51 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2013
New Economics Papers: this item is included in nep-eur and nep-pub
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

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Persistent link: https://EconPapers.repec.org/RePEc:iab:iabdpa:201305

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